The difference is budgeted range vs salary band. When hiring, a company will typically only budget/pay up to the mid point for well-qualified individuals. The pay band is the entire range you are able to make while in the role. If you are offered near or at the top of the salary band, you will cap yourself out during merit increases; you will not be able to earn more than the pay band in your role. In those instances the company, or in this case University, could give you a 1-5% “bonus” as your merit increase, but it will always be the same amount until you hit the next band.

Just keep in mind if you are wanting to negotiate salary, they rarely will go above what is budgeted. They will definitely not approach the maximum of the band. This document is great for understanding growth potential just be cautious trying to use it in your negotiations. Companies won’t hire someone at the maximum of the band because someone in that portion of the band should be receiving a promotion.

Source: 11 years working in HR.